San Diego Colocation Pricing Trends You Need to Monitor

Everything in Southern California is just a little different than most of the United States – and the data center market is no different. San Diego colocation providers are not only significantly more competitive than in other areas, but they are more abundant in small- to medium-sized data centers rather than the massive, city-block-size centers.

Because of this unique colocation market, there are several trends that you should know about:

• Ability to negotiate (but not necessarily on the price)
• Energy vs. space
• Credit impact on pricing

There are many good colocation providers, and it can sometimes be hard to differentiate between them, but IT decision makers are becoming more knowledgeable about data centers and are expecting much more flexibility and customization.

Ability to Negotiate

Colocation pricing is becoming less flexible and more rigid, but there is always room to negotiate on other necessary services.

Perhaps a colocation provider can offer a wider variety of cloud services, or a client may need a more managed (or hands-on) solution

The colocation providers and clients can agree to different levels of customer service and training. There are several factors that can be worked into the pricing package, so never be afraid to ask for more than what is originally offered.

Energy vs. Space

When seeking pricing, it is best to understand how the colocation provider figures their pricing, whether it is by rack space or a number of kilowatts used or a combination of both.

Some San Diego colocation providers may charge on the basis of

• Price per kilowatt
• Price per square foot
• Connectivity – monthly price for Ethernet, fiber, and copper cross connects
• Cabinet installation – usually a one-time charge
• Combination – total monthly price of space used, power, connectivity type, and a one-time cabinet installation

Knowing how the colocation provider determines their price will help the customer decide on the right data center for them.

Credit Impact on Pricing

Here is one interesting secret that you may not have known. If a client has a good credit rating score then the colocation pricing is more open to negotiation, but if the score is not that great, the pricing is apt to standing firm.

This is not new to many industries including housing and banking, but it is a fairly new trend to the data center market. A company with a strong credit rating can negotiate pricing and services, saving them potentially thousands of dollars per month.

San Diego Colocation Trends

The demand for data centers is increasing, and with this upward trend, data centers are becoming creative on their pricing, energy usage, and customer service.

Some pricing trends include the ability to negotiate on services, how pricing is determined, and that credit scores can impact the pricing for clients. So when deciding on which data center to choose, remember there is more than just the standard packages offered.

Have you heard of other San Diego colocation pricing trends? Let us know your thoughts in the Comments box below.

And if you are involved with growing the client base and revenue of a San Diego colocation provider, be sure to download your free copy of Lead Generation Best Practices for Colocation Data Centers.